Benefits of Fixed Rate Annuities

Fixed rate annuities are designed to provide stability, tax efficiency, and dependable growth, making them a valuable component of many long-term financial strategies.

Safety of Principal

Fixed rate annuities offer strong protection for your investment, including:

• Principal guarantee: typically, 100% of your premium is guaranteed by the issuing insurance company
• Money-back features: many contracts ensure you will not receive less than you invested, minus withdrawals*
• Strong industry oversight: insurance companies are rated by A.M. Best, Standard & Poor’s, and Moody’s
• Legal reserve system support: insurers set aside required reserves to meet policyholder obligations

Tax-Deferred Growth

Tax advantages can help enhance long-term accumulation:

• Tax-deferred earnings allow interest to compound without current taxation
• Reduced current taxes by deferring state and federal taxes until withdrawal*
• Tax control - pay taxes when and how you choose to take distributions
• Potential Social Security benefits protection by reducing taxable income

Competitive Yield

Fixed rate annuities may offer attractive returns with greater certainty:

• Competitive interest rates with no start-up fees
• Earnings often exceed traditional savings accounts
• Guaranteed minimum interest rate ensures consistent growth

Liquidity and Income Options

Access and flexibility are built into many contracts:

• Penalty-free withdrawals* of a portion of funds each year
• Optional income payments you can’t outlive
• Lump-sum access available (withdrawal charges may apply)
• Hospital or nursing home waivers may provide full liquidity

Estate Planning Benefits

Annuities can help simplify wealth transfer:

• Assets pass directly to beneficiaries, avoiding probate
• Beneficiaries can choose lump-sum or extended payout options

In many cases, annuity assets are not subject to creditor claims.